Michigan

Independent Bank Corp. finalizes deal with the U.S. Treasury

IONIA -- Independent Bank Corp. on Friday said it finalized its deal with the U.S. Treasury that resulted in a $72 million investment from the Treasury Capital Assistance Program, known as TARP.

The Treasury received preferred shares that pay quarterly 5 percent dividends for the first five years and 9 percent thereafter.

Treasury also received the option of buying almost 3.5 million shares at $3.12 a share.

The deal means Independent may not buy back its common stock or raise its dividend of 4 cents per share until Dec. 12, 2011, unless all preferred shares have been redeemed by the bank or transferred by the Treasury.